Asian rust provides blip in what were falling prices

Feedstuffs, November, 2004 by Gil Gullickson

End users planning to buy soybeans and soybean meal at continually sinking prices this fall were thrown a curveball by the U.S. Department of Agriculture's Nov. 10 announcement that Asian soybean rust has surfaced in Louisiana (nearby story).

Soybean complex futures, which have been pummeled by this year's projected record crop, quickly reversed course following the announcement. Although Asian rust has likely had little impact on 2004 yields, the trade is apprehensive about its impact on 2005 production. In fact, the November 2005 futures contract jumped more than 20 cents last Wednesday following USDA's announcement.

"How Asian rust will affect acres and production will be the big discussion over the next few months," said Dan Zwicker, grain market analyst...